Miniratna stock jumps 5% after company’s net profit increased by 34% YoY  

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Miniratna stock jumps 5% after company’s net profit increased by 34% YoY  
Credit: © Reuters.

Share price of this financing arm of the Indian Railways moved up by 5.1 percent on BSE to hit an intraday high at Rs. 182 in the morning trading session of Tuesday, after reporting a rise in net profit by 7.4 percent QoQ and 34 percent YoY.

With a market capitalisation of Rs. 2.35 lakh crore, at 12:08 p.m., the shares of Indian Railway Finance Corporation Limited (IRFC) were trading in the green at Rs. 179.95, up by 3.9 percent.

The fluctuations in the share prices were observed after the company announced the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Monday.

IRFC’s net profit stood at Rs. 1,717.32 crore in Q4 FY23-24, indicating a growth of 7.4 percent QoQ from Rs. 1,599 crore in Q3 FY23-24 and by 34 percent YoY from Rs. 1,285.24 crore in Q4 FY22-23.

The consolidated revenue from operations climbed by 4.5 percent YoY from Rs. 6,193.6 crore in Q4 FY22-23 to Rs. 6,473.11 crore in Q4 FY23-24, but declined by nearly 4 percent QoQ from Rs. 6,736.6 crore in Q3 FY23-24 to Rs. 6,473.11 crore in Q4 FY23-24.

Further, the Board of the company has recommended a final dividend of Rs. 0.7 per equity share of face value of Rs. 10 each for the financial year 2023-24, subject to the approval of shareholders.

The company’s Board also approved the raising of resources for FY24-25 up to Rs. 50,000 crore from both domestic and international markets.

The funds will be raised through a prudent mix of Tax-Free Bonds, Taxable Bonds on a private placement or public issue basis, or any other bonds/debentures, Loans from Banks and other Financial Institutions, etc.

As of March 2024, FIIs hold 1.08 percent of the shares, whereas DIIs hold 0.89 percent of the shares in the company, aggregating to 1.97 percent of the institutional holdings.

The stock has delivered multibagger returns of 438.8 percent in the last one year and 133.7 percent in the last six months. So far in 2024, the company has given nearly 79 percent of positive returns.

Incorporated in 1986, Indian Railway Finance Corporation Limited is a schedule-‘A’ Miniratna CPSE under the administrative control of the Ministry of Railways (MoR).

IRFC is engaged in the business of mobilising funds at competitive rates from domestic and international markets for supporting the infrastructure development of Indian Railways. Its primary business is leasing rolling stock assets, railway infrastructure assets, as well as lending to other entities like Rail Vikas Nigam (NS: RAIV ) Limited (RVNL) and IRCON under the MoR.

Written by Shivani Singh

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